While people continue to scour the Facebook initial public offering prospectus for insights into the social media industry, investors are also digging for clues concerning the financial fate of companies closely tied to the success of Facebook Platform -- a set of APIs that enable third-party developers to integrate with the world's largest social network.
The Facebook IPO filing provided insights into the long-term viability of companies such as Zynga, and those insights lifted such companies during Thursday's trading hours.
Zynga Inc. (ZNGA) shares jumped more than 15 percent Thursday afternoon. Investors appeared to have more faith in the company after Facebook's IPO filing revealed that 12 percent of its $3.7 billion in revenue ($444 million) from 2011 came from its partnership with Zynga.
Snap Interactive (STVI), one of the few other companies to have a leading application on Facebook since 2007, was less fortunate. The company's stock fell roughly 5 percent by the end of Thursday.
Despite the small drop in share prices, Snap has experienced more than 10 consecutive quarters of revenue growth. In 2011, its revenue increased 198 percent over the year prior. The quarter-after-quarter growth experienced by Snap is a prime example of how well Facebook allows a company to spread services virally.
While Snap's string of success is a prime indication of what a public company can achieve using Facebook Platform, it will be even more interesting to find out how well companies fare after Facebook rolls out even more apps in an attempt to make sharing frictionless.